Pump pandering

U.S. Rep. Jim Jordan, R-Urbana, long has been a realist about the fiscal problems in government. Pandering on such matters hasn't been his style - at least not until Sens. Hillary Clinton and John McCain introduced a loser of a proposal that no reasonable person believes would help.
Jordan last week criticized the inaction of Congress and President George W. Bush to pass comprehensive energy reform. Jordan is right about the government; it shares some blame for energy prices. However, in a brief mention, the first-term congressman said he supports a gas tax holiday to provide price relief through the summer.
Jordan normally would find no greater advocates of a tax rollback than here. But, on this issue, he's wrong. First, a gas tax holiday - either by stopping tax collection or shifting responsibility for the tax to oil companies - during the busiest travel time would worsen prices at the pump. Second, the gas tax, used properly, is one of the fairest forms of taxation.
The federal tax on a gallon of gas is 18.4 cents. In Ohio, consumers lose another 28 cents per gallon to state government, higher than all but seven other states, but that's something for state lawmakers to fix. Halting tax collection or shifting the federal tax burden temporarily would save the driver of a 20-gallon gas tank an entire $3.68 per fill-up, or about $48 through summer if he filled up once a week. Some people have switched to smaller, more fuel-efficient vehicles or have begun driving less - both market responses to gas prices - so many wouldn't save even that much money.
In fact, every driver would end up paying more. Given that so many haven't changed driving habits - and because even a minor dip in prices leads to lines - demand would drive up prices, likely beyond 18.4 cents. Government might not have that money for a while - which would be great - but neither would consumers.
While both state government and federal government could help with prices - opening up offshore and Alaska National Wildlife Refuge drilling, easing environment restrictions and using gas taxes only for roads and bridges - consumers hold the key to change. Although the price of gas bothers them, consumers continue driving, suggesting the price hasn't gone high enough to cut into demand. With limited supply, prices remain high.
But, while Jordan normally is right about cutting taxes, he ignores the obvious on the gas tax: For the most part, it serves its intended purpose. It pays for the roads on which we drive.
Jordan is right about the need to open up more areas to drilling and to make it less restrictive to expand refining capacity, but saying he supports a gas tax holiday is pure pandering.